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Withdrawals & Loans


Your plan was established to encourage long-term savings, so withdrawals prior to age 59½ might be subject to federal restrictions and a 10% federal tax penalty.

Generally, depending on your employer’s plan provisions, you may withdraw your vested account balance after you have been separated from service for 3 calendar months if you meet one of the following requirements:  

Early retirement (after age 55) or separation from service

Your death or total disability 

In addition, you must begin taking distributions once you reach age 70½ or you retire, whichever is later.

Please be sure to check with the State’s ORP office to understand potential restrictions before withdrawing money from your ORP account.  


After participants have been separated from service for 3 calendar months, loans are permitted from voluntary employee contributions only.  

Tax-free loans make it possible for you to access your account without permanently reducing your account balance. Defaulted loan amounts (not repaid on time) will be taxed as ordinary income and may be subject to a 10% federal tax penalty if you are under age 59½.